At the interbank foreign exchange market, the rupee opened at 82.44 against the greenback and closed at 82.31 (provisional), registering a fall of 10 paise over its previous close of 82.21.
Mumbai:
The rupee depreciated 10 paise to close at 82.31 (provisional) against the US currency on Monday as a strong American currency in the overseas market and firm crude oil prices weighed on investor sentiments.
At the interbank foreign exchange market, the rupee opened at 82.44 against the greenback and closed at 82.31 (provisional), registering a fall of 10 paise over its previous close of 82.21.
During the session, the domestic unit touched an intra-day high of 82.31 and a low of 82.46 against the American dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08 per cent higher at 102.58.
Global oil benchmark Brent crude futures advanced 5.28 per cent to USD 84.11 per barrel.
According to Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, the rupee depreciated on the back of a strong dollar and weak domestic market.
Meanwhile, the decision of OPEC to cut crude oil production led to a sharp rise in global crude oil prices, renewing inflation concerns.
“Core PCE (Personal Consumption Expenditures) inflation showed cooling inflation in the US, raising expectations that the US Federal Reserve may be at the end of its rate hike cycle. However, upbeat macroeconomic data cushioned the downside,” Choudhary said.
The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose from 55.3 in February to 56.4 in March, signalling the strongest improvement in operating conditions in 2023 so far.